Canada’s Industrial Relations Board has ruled stoppages on the country’s two largest railways must end.
The order, issued on Saturday (24 August), ended a shutdown on the Canadian National Railway and Canadian Pacific Kansas City networks, which had brought disruption to national freight traffic.
The Teamsters union said it would “lawfully comply” with the decision but added it would “appeal the ruling to federal court”.
Freight services in Canada ground to a halt on Friday after a deadline passed without agreement between the rail companies and union officials over working conditions.
The shutdown was different from a strike in that engineering and conducting staff for the two companies – which have a duopoly on freight traffic in Canada – had been locked out.
The stoppage came after Canada’s federal government changed rules last year on shifts and rest periods. The rail companies and unions could not come to an agreement on changes to working practices.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
Business groups had demanded Canada’s federal government step in and insist on formal arbitration.
In a post on X on Saturday, Steven McKinnon, the country’s federal minister of labour, said: “The Canada Industrial Relations Board has issued a decision to impose final and binding arbitration in the negotiations between CN Rail, CPKC and the Teamsters Canada Rail Conference. I expect that railway companies and employees will resume operations at the earliest opportunity.”
In a brief statement, Canada National Railway said it would follow the order, which it said includes a move to arbitration.
“Over the last nine months, CN negotiated in good faith to reach a deal at the table. The company consistently proposed offers with better pay, improved rest, more predictable schedules, and a voluntary mobile workforce,” the company said.
“While CN is disappointed an agreement could not be reached at the bargaining table, the company is satisfied that this order effectively ends the unpredictability that has been negatively impacting supply chains for months.”
Canadian Pacific Kansas City said the order “ends months of unnecessary uncertainty and disruption for the Canadian economy and North American supply chains”.
However, the railway operator added: “We anticipate it will take several weeks for the railway network to fully recover from this work stoppage and a period of time beyond that for supply chains to stabilise.”
Paul Boucher, president of the Teamsters Canada Rail Conference, hit out at the country’s Liberal Party, which forms a minority government.
“This decision by the CIRB sets a dangerous precedent. It signals to corporate Canada that large companies need only stop their operations for a few hours, inflict short-term economic pain, and the federal government will step in to break a union. The rights of Canadian workers have been significantly diminished today,” Boucher said.
“The Trudeau Liberals have chosen to side against middle- and working-class Canadians, abandoning their supposed progressive values at the first sign of short-term supply chain disruptions.”
